Have you ever gone to pay for another car insurance term only to find out your rate has changed yet again? You’re not alone. Many drivers experience these fluctuations, leaving them puzzled about the reasons behind the adjustments. There are many reasons why your car insurance rates might change—some beneficial and some not. Let’s look at how you can get the most out of your plan and combat fluctuating car insurance rates.
Why Are Car Insurance Rates Variable?
Car insurance companies choose premium prices based on the risk of paying out claims. While this might seem straightforward, insurance companies constantly micro-analyze a complex web of factors to dish out policies. Your personal characteristics mix with broader economic and environmental factors to create a fluctuating insurance rate landscape.
Age significantly affects insurance rates. Young drivers, typically under 25, often see higher premiums due to their demographic’s accident statistics. As drivers age and gain experience, rates tend to decrease, assuming a clean driving record. Speaking of which, your driving history mirrors your risk to insurers. Accidents, speeding tickets, and other violations signal a higher risk, while a clean record can lower rates and open you up for discounts. An accident may not immediately up your rates, but it will eventually show up in one way or another and change your rates.
The car you drive also influences your rate. High-performance vehicles, for example, carry higher premiums due to their speed capabilities and potential for risky driving behaviors. Similarly, cars with a high theft rate or expensive repair costs can see elevated insurance costs. As these factors might be out of your control and representative of larger societal trends, they can unexpectedly affect your rates. If your rates are in flux, a new car might be to blame. Even the exact same make and model of car might warrant different insurance rates depending on their history.
Finally, new tech might be influencing your rates, and it pays to pay attention to the details of your policy. Telematics devices, which monitor driving habits, offer insurers a granular view of your driving behavior. Safe driving habits, as recorded by these devices, can lead to lower rates, while risky behaviors might result in increases.
How to Combat Fluctuations and Lower Your Rates
Fluctuations that raise your monthly premium aren’t great, but fluctuations that lead to more savings are a welcome surprise. Luckily, drivers can take active steps to lower their car insurance rates.
Get Quotes from Multiple Companies: Don’t assume that the first quote you receive will be the best, and don’t assume that your current insurer is the best. Take the time to compare insurance offers from various companies and an insurance agent. Your current insurer might not always have the best deal, especially if your circumstances have recently changed.
Stay Safe on the Road: As important as safe driving is to prevent injuries and accidents in general, it is also one of the most effective ways to lower your rates. Avoid speeding, follow traffic laws, and consider taking a defensive driving course. Some insurers offer discounts for completing such courses, recognizing the lower risk you pose on the road.
Review and Update Your Policy Regularly: Make it a habit to review your policy annually or after any significant life event. Updating your policy to reflect your current situation may open you up for new discounts, offers, or adjustments on your premium.
Bundle Multiple Policies: Insurers value your loyalty and may offer you competitive rates when you bundle your car insurance with home, life, or health insurance. If you already pay for those policies, bundling can be a great way to find discounts.
Everyone needs car insurance in Florida, and it can be a shock when your monthly premium is not what you expected. Hopefully, we can lower that number, not raise it. Contact Anderson & Associates Insurance Group today to speak to a team member and get started on your search for lower car insurance premiums.
